>> live from new york, welcome to the late edition of bloomberg west." yes, i'm cory johnson in for emily chang. rundownts trade to the a coding lesson from mark how about a coding lesson from mark zuckerberg? his video is one of many for students interested in the encoding. an initiative that wants an hour of your time at this week. advertisers can follow you

around the web, now apple is using technology to follow you around the store. if it works it can change the face of brick and mortar retail. jony ive is trying to make apple one of the most innovative brands. we're going to catch up with nike's design guru. the biggest names are speaking with the united states urging america's children to learn to code. it comes as a critical time as u.s. students according to a new rank has american students ranked 21st in science and 26th in math. an hour of code initiative asked people to spend an hour coding. it kicks off computer science education week. the event is sponsored by code.org. here is president obama. >> learning these skills are not

only important for your future but for our country's future. if we want america to stay on the cutting edge, we need young americans like you to master the tools and technology that will change the way we do just about everything. >> they are giving coding tips from former hackers, tech entrepreneurs and this guy, mark zuckerberg. >> if i wanted to wish everybody on facebook a happy birthday by sending an e-mail, it might take more than a century to write out all the e-mails. with a few lines of code, i can have a system send an e-mail to everybody on facebook. that is why they are valuable. >> joining us from san francisco is the cofounder of code.org. ali partovi. besides that from mark zuckerberg, what is the point of this? >> high, cory. it is great to be here. you mentioned earlier that we are lagging in math and science.

at least every school in america does teach math and teach science. only one in 10 schools teach es computer science. ask yourself, if the point of education is to prepare kids for life and the 21st century tom a -- and the 21st century, shouldn't we teach kids some computer science. -- century, shouldn't we teach kids some computer science? it is not being taught at our schools. we want to make it available to everybody. to prepare kids everywhere for the lives they will be living in the 21st century. >> is coding a foundational skill or vocational? will the lessons learned today by kids coding be applicable 5,n coding is very different 10, 20 years from now? >> i am glad you asked this.

first of all, the word code is a final word we've chosen to name our organization. we are not talking about coding but computer science. computer science is a foundational skill. it is just as relevant to know how to dissect a frog as to dissect an app. maybe one out of 20 kids might actually go on to work as a software engineer, but everybody should know the basics of how the internet works and how logical works and planning. computer science teaches you how to break a large problem down to smaller parts. it teaches them how to think through action and consequence. that's something that every child should learn to do. if you want to grow up and become a lawyer or accountant or dentist or even the president, you should have a basic foundational understanding of computer science. it would be more valuable to

your life today than some the other things we are teaching. >> i am worried about children who want to be accountants or dentists. i was on the playground with my little kid and a heard a boy say, as i was walked around with javascript for dummies, he was berating another kid. this was another high-performing school. it really may be wonder, what is -- it really made me science is wonder, what is the age at which moreter science is relevant or at least as relevant as time spent learning basic math or basic anything? >> recent studies show that kids can start embracing the basic concepts of computer science before they learn to read or write. >> really? >> it is like learning a language. english is a really complicated language when it comes to all the different spellings and exceptions. computer science has a small vocabulary and very straightforward logical syntax

without any weird rules. it is fairly easy for kids to learn compared to reading and writing which is comparatively more difficult. like anything else, you do not start by being shakespeare but with the abcs and uniform words -- and then you form words and sentences. you can stop there or go on to become the next shakespeare. the very basics, that is something that everybody can benefit from. kids can learn as early as kindergarten. >> who is leading in this? all the stats where the united states is in the 20's. which countries are leading and why? >> in china, computer science is mandatory for graduation from high school. every single chinese students who graduate from high school has taken computer science. in vietnam, they are starting to teach it in kindergarten. in astoria, first grade. -- estonia, first grade. in the united states today, this morning, the city of chicago announced a partnership with us,

computer science is going to become a core subject in every school in the city of chicago. the city of chicago is leading the country. also today the city of new york announced a partnership with , code.org. the real question is, i live in san francisco, why is it san -- why isn't the bay area is ang the country when it place for all the technology is created? how come our schools do not have computer science? why is it that only one or two cities? >> fascinating things. interesting to see chicago. you learn to vote early and code early. ali, thank you. heading to the apple store? new technology could be tracking

you as you walk through the store and are personal concierge service showing up on your iphone. that story next. ♪

>> welcome back. i'm cory johnson, this is "bloomberg west." apple is using a new location technology to track a shopper's location inside of its retail stores known as ibeacon. it is a tool that sends people information about apple products as they walked through the store. jon erlichman. is this creepy or cool or both? >> it could be a little of both, cory. they are all about the user experience. more on the ibeacon story. they hope to boost sales. more on the ibeacon story. let's start simple.

explain exactly how i begin would work. what are examples if you're wandering through the store of what might happen? >> ibeacon was something they introduced on ios seven but did not talk about. the iphone has always had the capability of knowing where you are. now what they did is added something to the core location function which allows it to tell you when you are near a beacon. it is a little device that uses something called bluetooth low to tell you are similar to technology used for headphones near the thing. a store could tell you are in the store or put it all in aisle or rack. >> some people said smart idea, good way to boost sales. corey highlighted the creepy factor. could it be both?

>> very much so. this is always the attention between providing a better in- store experience versus getting people concerned. if you went into a store and the an example may beif you went into a store and the salesperson greeted you by name and knew something about your buying habits, you would think that is good customer service. if you walk into a store and somebody you do not know knows your name, that may make you feel uncomfortable. they may be telling you the same thing. that is what the stores are trying to do. stores are competing a lot with online. online as a benefit of tracking as you go through website what you look, what you're interested in, what your browsing history has been. you think the brick and mortar stores and they are trying to replicate by bringing more knowledge. yeah, it depends on how it is done. it could be very creepy. >> the thing with competition. assuming apple roles this out and similar that would be other retailers roll out something matched with android

devices, who do you think it a position toin a generate more sales given the size of the android world? >> one thing is what apple did they are rolling out a technology which is essentially a location technology called i beacon. they make it available to app developers to build into applications. the announcement last week is that apple is doing it in the apple store, but any application developer could do or whether -- could do that whether it is for macy's or a train station or a ballpark or whatever. apple has a big footprint and a great market to do that. is a rumor that androids will they may not be be able to use i beacon as well. competitive. google has their own thoughts and programs. the indoor location market is really a hotly contested market. there's a lot of technology out there. sometimes the winner is not

always the best technology but the one that can get the biggest footprint down. if it is we go, successful for apple, does it mean they will spend less money on traditional forms of advertising, print advertising? maybe some of those catchy tv ads? apple has plenty of money to spend on whatever form of advertisements they want. arnold gay will drop anything. their initial introduction into the apple stores is to show other retailers that apple is eating their own a dog food. maybe to provide aid best of example. the real money and real utility is it becomes a real hook for application developers to build into their products and make it more interesting. appreciate your insight. >> all right, we have to leave it there. marc prioleau. back over to you. >> thanks for crediting me for bringing in the creepy aspect.

tomorrow, bloomberg television is going into ups. the biggest day of the year for the package delivery company. only carol massar could make a brown outfit look hot. there she is. doing the deliveries. she will be at world ports, it is the company's $1 billion hub in louisville kentucky. she is going to have that story with the ceo scott davis plus or -- plus orion, the algorithm that will save the company $50 million. the remake of "top gun" up next. ♪

>> this is "bloomberg west." you maybe ask yourself why twitter shares rallied? maybe you did not notice. perhaps it is a newfound hope over new twitter tools that allow advertisers launch invalid individually tailored ads. who knows, it could bring in more revenue. a handful of companies working on it. adam burke joins us today from san francisco. this seems like it is the holy grail. twitter knows who you are and gives an ad relevant to you. is that what this is? >> providing more targeted ads which result in better campaigns and more revenue for twitter. they are willing to pay more. >> i've been hearing about this idea since tim was the executive

-- was the ceo at yahoo!. what makes this any different? >> a couple of things. the unique aspect of twitter. first of all, twitter is inherently a cross device product. one of the challenges that advertisers are facing and how to reach this increasingly distributed consumer. particularly how to reach them on mobile desires is. 76% of users access twitter via mobile devices. this is taking the targeted ad one step further in that we can identify a user's browsing. we can target that same user on their mobile device. not only does it provide a really compelling adding unit but solves the cross device problem which is such a challenge for advertisers. >> why is this such a challenge? >> as the user moves across devices, there is no way to identify who that person is in a

universal way. through that twitter account id we can say we know who the , person is when they go to the twitter website or mobile phone. it creates that twitter user id that acts as an identifier. >> it seems on a certain level, you could not have ads so closely tailored to an individual person. the revenue from selling the product would not be worth the price of the ad. you have to find similar users, not individual users. >> yeah, a bit of both. it depends on the economics of serving the impression are and that is something we find and we hope our customers do on a daily

basis to make sure they spend and the amount they bid to a great roi, serving to specific users. a very proven method to generate great roi when you know somebody has demonstrated intent and even if you are an online retailer or even a b2b brand that has a large ticket item for it can work in either case. how much you are bidding and how you have to be smart about much you are spending per user. anybody who is selling anything online is going to want to follow-up with people who demonstrate intent and show interest by navigating around the website. >> in my experience, let's say i have bought a $300 pair of shoes. i am not going to buy another pair of shoes every week. yet those ads seem to follow me around. it's her something about this announcement that changes that experience? >> that is happening. that is poor execution on the campaign side.

within this tool, you should very easily be able to pass just as you are able to be aware that a person expressed interest in that pair of shoes and that person has purchased and adjust the campaign accordingly. you may not want to stop communicating with that person forever, but your message might want to change. you may want to move on to shoelaces or something else that socks or shoelaces or something else that might be complementary or reach out when a new line comes out. >> we turn now to our partnership with george washington university's planet forward. more shoppers going online means more deliveries, more fuel wasting delivery vans. trying to make the holiday season a little greener with an innovation. frank sesno has more. >> this may be the future of delivery technology, but now it

is trucks and vans. far from efficient, they only get 12 minus -- miles to the gallon. consuming 20% less fuel and increasing mileage by retrofitting old cargo vans and turning them into electric hybrids. they uploaded their idea to planet forward. >> we added an electric motor to the rear of the transmission which acts as a generator during and in the process, it is not in break advance and slows the vehicle down. and in the process, it is not in the rear. >> and the electricity powers the motor. adding torque to the engine so it does not have to work as hard. less fuel and less emissions. $8,000rofit costs about and they can save about $2500 per vehicle per year in fuel and maintenance costs. the cofounder helped started while finishing his grad degree

in m.i.t. his third start up in the green it is sector. energy third time is the charm. the third time is the charm. he partnered with original outfitters to expand to a few hundred installations or year. small, but growing. -- per year. able to convert this is a platform which can go chevy and ford vans. on many types and makes and models. we see it as a race to get on this many commercial vehicles as possible as soon as possible. >> driving down fuel consumption to put the brake on gas guzzlers and fuel consumption. moving the plant forward. >> frank sesno joins me. i thought you would have a story about santa's sleigh. it doesn't pollute at all. >> it is hybrid. what makes it different if they can put these packs on older vehicles and they want to do it on a lot more. they will announce another major deal with a corporation in a

couple of weeks. it looks like they are on the move. >> anybody who thinks reindeer are green have not walked behind a lot of ranger. we are talking about surveillance and the cost of business. ♪

>> you are watching "bloomberg west" where we focus on technology, innovation and the future of business. i'm cory johnson in for emily chang. we are in new york. mobile payments company square has unveiled a new card reader. they assured us it has improved accuracy. more compatible with more smart phones and tablets. square says the reader would be available in over 3000 stores within a year. online dating site zoosk hopes to get plenty of love from investors. they have picked bank of america to lead the ipo. they gain users by tying itself to facebook.

it has more than 40 million active and presumably less lonely numbers. texas instruments, one the most pervasive companies and all of technology said that the general slowdown in technology spending is not hurting ti and they have forecasted sales of $40 million for the fourth quarter. this is the first quarter of the last 11 that ti sales were not shrinking thanks to improving sales in industrial devices in cars. the nation's top tech companies are urging the white house and congress to reform surveillance laws. google and yahoo! and apple have joined forces. it shows the government has gained access to some of the secret servers. in an open letter, they called for the white house and congress to reform government surveillance laws writing "we , urge the u.s. to take the lead and make reform to ensure that

surveillance efforts are government restricted by law in clearly proportion to the risk and transparent to subject of oversight." independent earlier we spoke to michelle richardson. a legislative counsel where she focuses on cybersecurity and government transparency. issues like the foreign intelligence surveillance act. emily started by asking the letter was more of a political statement said the companies have cooperated in the past. >> what may have prompted the new movement is the recent revelations in the last month is they are not serving the that they are not serving the companies with court orders, but they are hacking into their systems overseas where our laws do not apply. it may have pushed him over the -- it may have been what pushed them over the edge to get involved. >> the people who run the companies are powerful people -- mark zuckerberg, larry page. google accounts for a large part of the united states economy. how is the government likely to respond?

>> this adds a whole new voice to the privacy debate. privacy advocates and members of congress have taken a principled stand. we now have the companies weighing in. congress does listen. the president is expecting a reviewfrom an appointed group just this week. it is very likely that early next year, we will see action on it. >> president obama said he is to get the nsa to impose self- -- is trying to restraint. but take a listen to that quote. >> i will be proposing some self-restraint on the nsa and to initiate some reform to give people more confidence. but i want everybody to be clear -- the people at the nsa generally are looking out for the safety of the american people and not interested in

reading your e-mails and not interested in reading your text messages. >> president obama speaking on "hardball." michelle what kind of reforms do , you imagine the president is talking about? >> the way he phrases it as self-restraint will not be enough. the nsa internally has privacy rules that it violates on a regular basis. it cannot be trusted to police itself. that is not how our democracy works. the most important thing and that we hope the white house and congress will endorse is changing the statutes and rules that they cannot collect information on everyday americans not suspected of doing anything wrong. >> this is what a devil's advocate would say how would the , government and nsa protect us if everything is transparent? >> nobody is calling them to name terrorist targets or explain who they are spying on,

we are asking that they explain the basic parameters. the legal underpinnings. release in the united states, we is crazy that have a secret court making secret law. there's a lot of information public that ise not going to tip off the bad guys but allow us to have an informed debate since 9/11. >> yahoo!, twitter, google said they will beef up security. what else can the companies do? >> we would like to see the companies fight back against court orders. some of these we would like to see them get involved in the legislative debate. i think that is what's so important about today's release. finally endorsing an idea that the government should not be scooping up all of the information. working with them to take them so we are to the next step and

try to pass legislation that will rein in other agencies. >> that was emily chang. this is "bloomberg west" and i am cory johnson. we are going to be looking at going forwardwe are going to be looking at, exciting new stuff some of the including designs are changing the way sneakers work in the future. that is when "bloomberg west" continues. ♪

>> payment startup, crinkle, >> payment startup, crinkle, that a stanford student created, said they will lay off half of their workforce. basketball star kobe bryant recently unveiled his latest line of sneakers. kobe 9's.lled the

the man behind the design takes a similar approach to jony ive. technological innovation from the ground up. >> and there you go. we talk about the design of tech devices. technological innovation these days is happening from the ground up including basketball shoes. kobe incorporates marketing. i caught up with the creative director and i started by asking him about the design similarities between shoes and tech gadgets. >> i think design in general, there's a natural design process that you go through and certain design principles that transcend any discipline or type of product you may be working on. i think within footwear, we are technology is changing and in a really interesting time now because technology is changing and advancing in so many ways.

both from a science perspective of how we can gather more information and more data and science from the athlete. that is the upfront side. then on the backside, and terms of the way we can manage -- manufacture products. something like flying net -- something like fly net opens up a whole new world of possibilities as you mentioned designing to the pixel level. i think that is true for all of design. certainly true for footwear or it is athletic design. >> people are starting this and -- people are starting to get the idea about what 3-d printing is all about. since you're working with it is an incredible trend. athletes who probably have a

vision but it would be a whole host of shoes, elaborate on that. how quickly can you take a concept and come up with a prototype today versus 5, 6 years ago? >> dramatically faster. through manufacturing processes and prototyping processes, we can turn samples of prototypes in some cases 1-3 days where it would take easily 1-3 weeks prior. the process would enable the prototype. when you design - one of the unique things about designing footwear or apparel, it goes on the body. the body is a complex and constantly in motion. a complex thing to design for. the more than we can prototype and learn from prototypes, the better. as you mentioned, technology is allowing us to iterate that much better.

>> jony ive at apple likes to talk about simplicity. do you live by that? >> i am a big believer in simplicity. i believe there is a purpose to nature and the natural systems. it is complex. it is also very simple. that is something we talk about at nike quite often. taking the complex and making it simple. complex simplicity if you will. >> what about the fact you have a lot of big-name athletes you are working with? they all want to come forward with their own ideas. how do you take each of those unique flavors and then come up with all of these different shoes? >> it is working with those different athletes. we always listen. it is our mantra. listen to the voice of the we athlete. we take that to heart. whether it is kobe bryant or any

other athlete. you fundamentally listen to the athlete, the voice of the athlete and that helps us to take it to new places. also from a style standpoint. from a performance standpoint andalso from a style standpoint. >> are the kobe bryant's you could share with us? you're always thinking about them. >> all man, he has so many. one of the many great things is he constantly wants to push the design innovation from a functional and aesthetic standpoint. every time we sit down to meet, that is one common thread. it is like ok, what do we do next? i am thinking this or feeling this. how can we make this better? how can we change the game? that is constant with him. >> that was eric avar. kobe wanted to go back to the hightop.

he wanted to have the same flexibility like the low top. to keep them happy. >> keeping kobe happy. i think that as the lakers mantra for a while. all for it. quick clarification. ibeacon does not track customers. instead it sends out a signal that iphones and ipads can pick up in apple stores to enable that setting. hit "top gun" is coming back to movie screens which jerry bruckheimer was part of the original and will be back. that is after the break. ♪

>> oh, my god. "top gun" that was a scene.

from the 1986 oscar-winning film, "top gun." that starred tom cruise. paramount announced it will make another with superproducer jerry bruckheimer. no word if it is a sequel. no word if it will star tom cruise. it could star jon erlichman for all we know. what did it win an oscar for? i had to fact check. >> you are putting me on the spot. >> i will tell you. "take my breath away." it was the song by berlin. that was the best winning oscar song in 1986. the year of our lord in bad music. cory and i will perform on a future edition of "bloomberg west." today we give you the details. >> there's a corporate story. the ceo was at an event laying the groundwork for what the strategy will be going forward. paramount is owned by viacom.

>> he said the goal would be to make in the neighborhood of 15 films a year. they would like to focus on franchises. whether that is "mission impossible" or "transformers." of course now that bruckheimer fold, you canhe bet on franchises like "beverly hills cop." he made a name for himself with some of these films. now that he has gotten a three- year deal with the studio, a way he goes. >> at some level, some guys are saying jerry bruckheimer -- and they are focusing on a few producers who gave them hits a long time ago and not recently. >> you are right into the sense of the studios want to make a big-budget films but they do not want to take significant risks.

how do you minimize that risk? go to great performers who have shown they can do it over the years whether a bruckheimer or joe ross. bruckheimer was producing films for disney. then there's the younger generation. behind films like "mission impossible," you have david ellison the son of larry ellison providing a lot of capital to make them possible. the generational gap between producers right now and that seems to be some of the flavor >> interesting stuff. inside paramount. embarrassing fact. i have never seen "top gun" and i might keep it that way. >> we will watch it together. and we will sing. >> very quietly in the background. nfl fans may have seen the commercials of clay matthews and wondered what it has to do with text messages.

the company behind it is partnering with nfl to bring coupons and customize content delivery to fans. as they do this with stars and name brands on their phones, how effective can they be? the ceo, joe gillespie. explain how it works. >> we are providers. you call any brand, * nfl. a simple phone call, we can deliver any mobile experience to 290 million consumers. >> you already lost me. what is mobile experience? >> anything from a coupon to a video to a landing page to an app. the nfl, when you call, drew brees answer the phone.

it navigates you to the landing page. one click you are downloading the nfl app. >> that is cool. you actually have drew brees manning a call center or is it recorded? >> is recorded. >> he looked great yesterday. it is interesting this notion of fans getting closer to things they love. the whole notion of wearing a drew brees jersey says something about the connection of people make. is it working in mobile? >> it is. it is a phone call and there's a voice. brands love the fact that they can use celebrities as a part of the user experience. the bigger issue is that we are solving for it on my activation. in a simple way. everybody knows how to make a phone call.

nothing to download or scan. there is we are managing the app instributed mobile the world was the dial pad. you can call * followed by any brand. it is a very powerful and large go to market distribution. >> it sounds like a platform like whether you are creating a whole new way for the brand to go straight to the consumer. they are using and between like a billboard or old-fashioned technology like twitter. >> correct. i don't know if twitter is so old-fashioned. we work there as well. we are about activation. you have seen a lot of star star dialing events especially on tv and radio. we have the cbs local radio. sportscenter.

last week downloading the mobile app. what do brands love about us is it is an opportunity for them to engage via the other remote control that consumers always have in their possession which is a mobile phone. >> really interesting using the different infrastructure. what is infrastructure behind it? >> great question. we are a platform. >> thank you. >> you are welcome. our ip is the fs7. it routes to our platform. we recognize four keys. on every call the characters, the phone number, the make and model, and the location data. we have harvested all of the tower and sell ids. put another way, if somebody calls from boston, i can send them a boston cream pie. if the call is from new york i

bagel coupon.a beiru >> really interesting stuff. bottom line, apple technology we talked about does not track location. you have a cool new app. joe, thank you very much. bwest byte -- one number that tells a whole lot. john is in los angeles with that number. jon, what do you got? >> 1.7 billion. as the market for services like netflix and hulu grows researchers said 1.7 billion , devices capable of accessing content are said to ship by the end of the year. that would be a 20% increase from last year. from smartphones to gaming consoles and apple tv devices. no sports and there. it is tough to get sports on those devices. quite the trend. >> that is really interesting. a huge number. we will be watching that a lot more on "bloomberg west." more tomorrow.

you can find the latest headlines at bloomberg.com. ♪ ♪ >> it is really just beginning.

recovery is beginning because the core of the systems are repaired. seen business is really starting to invest.